The Environmental Protection Authority (EPA) has completed its assessment
of Covalent Lithium Pty Ltd’s proposal to expand existing lithium mining,
processing and transport operations and has recommended it for environmental
approval.

The Earl Grey Lithium Project – Life of Mine proposal is located at the Mt Holland mine about 100km south-east of Southern Cross.

EPA Chair Darren Walsh said the key focus of the environmental impact assessment
had been the extent of clearing, and potential impacts to the habitat of the malleefowl
and the chuditch – both listed as vulnerable species under the Environment
Protection and Biodiversity Conservation Act 1999 and the Biodiversity Conservation
Act 2016.

“The EPA acknowledges that the proponent designed its layout to reduce the
clearing of native vegetation, resulting in over 20 per cent of the footprint comprising
existing disturbed land from a former mining operation,” he said.

“That said, we recognise that malleefowl and chuditch may be directly impacted by
clearing activities, so the EPA has recommended conditions which include
undertaking pre-clearance inspections by fauna spotters and exclusion zones around
active foraging and breeding habitats.”

Mr Walsh said the EPA was cognisant of the proponent’s offsets for the already
approved proposal, which comprised land acquisition and on-ground management to
counterbalance the significant residual impacts to malleefowl and chuditch, as well as
land restoration and translocation to counterbalance the significant residual impacts
to the vulnerable Ironcaps Banksia shrub.

“In the context of the approved proposal and the significant amendment, we believe
the combination of land acquisition and on-ground management — including
predator control, monitoring and revegetation — will deliver benefits to the same
values being impacted.

“One of the largest threats to malleefowl and chuditch are feral cats and foxes, so the
EPA considers that an offset to implement a predator control program in the Jilbadji
Nature Reserve would provide an environmental outcome likely to be consistent with
the EPA objective for terrestrial fauna.”

Jilbadji is a reserve with a high diversity of flora and fauna values endemic to the
region, including recorded individuals of malleefowl, and suitable malleefowl and
chuditch habitat.

“The Department of Biodiversity Conservation and Attractions manages Jilbadji and
the EPA supports the offset approach to undertake a predator control program
across the entire nature reserve,” Mr Walsh added.

The Earl Grey Lithium Project – Life of Mine proposal involves duplication of the
processing plant to provide additional capacity of up to 4.4 million tonnes per annum.
This would include additional waste rock landforms and tailings storage, expansion of
support infrastructure including the accommodation village, ore and rehabilitation
stockpiles, roads, power infrastructure, communications, drainage and conveyors.

The EPA’s assessment included the consideration of the expansion and changes
which are now proposed in the context of the approved project. The EPA also
considered the combined impacts of the approved proposal and the significant
amendment, and cumulative impacts of other activities in the region. The EPA did not
reassess the approved proposal as part of its process.

EPA Report 1809 to the Minister for the Environment is now open for a three-week public appeal period,
closing 28 May 2026. Appeals should be directed to the Office of the Appeals Convenor .

The Minister for the Environment will make the final decision on the proposal.

EPA Media Contact:Jenni.Storey@dwer.wa.gov.au; 0434 734 997